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Montana Eyes New Marijuana Sales Tax

Montana Eyes New Marijuana Sales Tax

Gallatin County, Montana's most populous county, is eyeing a new marijuana sales tax that would likely raise prices on recreational and medical marijuana products. 

Cannabis products became legal in Big Sky country on January 1, 2022. The Montana Cannabis Control Division notes that there are stipulations resident must adhere to:

...adults 21 and over may possess and use up to one ounce of marijuana with no criminal penalties.

However, marijuana consumption and possession (including medical marijuana) remains prohibited in public and certain other locations. It is also prohibited under federal law on all federal lands and waters.

Marijuana (except medical marijuana) is prohibited in hospitals and other health care facilities.

Operating a motor vehicle under the influence of marijuana remains illegal.

According to Bozeman news network KBZK 7, this is the second time the tax on the ballot in Gallatin County has come up for a vote. A certification issue in June caused the results to be nullified. 

There are mixed feelings about the cannabis tax, with Elliot Lindsey, owner of Grizzly Pine, telling the outlet that "it's frankly illogical."

He went on to say, “Every dollar that we pay in taxes is a dollar that we can’t pay our employees which is a dollar they can’t use to pay rent."

Local communities, however, see the proposed 3% sales tax as a good revenue source -- even though dispensaries would likely be forced to raise prices to cover the costs.

“We have a lot of sales in the county. We are going to be the highest sale county in the state so we thought it was probably a good question to ask the people if they like us to capture some of that tax,” expressed Gallatin County Commissioner Scott MacFarlane.

This isn't the first time taxes on marijuana products have caused division in a U.S. state. Over the summer, many legal weed farmers in California claimed that their industry was "being taxed out of existence" on the West Coast. 

At the time, the Washington Post shared specific anecdotes from small cannabis farmers, who admit they are "near-death" following marijuana legalization in the blue state nearly six years ago. One farmer, Drew Barber, 48, shared with the Post that he's "not making it," following the price of his product decreasing from $1,200 a pound to about $400 a pound.

As for Gallatin County, voters will have a chance to decide on whether or not they want a new marijuana sales tax on November 8. 

What do you think about Montana eyeing a new cannabis tax?

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Rebekah Barton

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